Tessa Jowell loses out to Hollywood star after 'bidding war'

As Culture Secretary, Tessa Jowell is used to mixing with film stars. But she probably didn't expect her work to follow her home so literally in the form of Hollywood star Bill Murray.

Ms Jowell is believed to have become embroiled in a bidding war with Murray over a luxury apartment.

It is thought she lost out to the star and had to settle for another £675,000 property in the same block.

Neighbours saw Ms Jowell pulling up in her official Government car outside the exclusive development in Highgate Village, North London, last month.

There are eight two-bedroom apartments in the gated mews block. They each have an open-plan kitchen and reception room, sleek walnut flooring, balcony, underfloor heating and parking space.

It is believed Ms Jowell's initial bid for her favoured apartment was below the asking price but interest from other potential buyers meant she was forced to increase her offer.

The site manager for the property company selling the flats said Ms Jowell was eventually outbid by Murray, 56, who received a best actor Oscar nomination in 2004 for his role in Lost In Translation.

"Bill Murray is due to exchange contracts within the next few days, but the estate agents have still been showing people round,' he said, as builders around him put the finishing touches to the development.

"We heard that Tessa Jowell was very interested but it was too late because by that time Mr Murray's offer had already been accepted."

The man, who did not want to be identified, added that Mr Murray had already bought wardrobes for his new flat, sending a cheque from America to pay for them, together with a signed compliment slip.

The Minister's search for a new home follows the break-up of her 27-year marriage to lawyer David Mills. The couple separated in March after Mills was accused of being involved in a corruption scandal in Italy.

He faces two trials in Milan next year - one for corruption and a separate case concerning money laundering and tax evasion.

The charges relate to his involvement with the former Italian Prime Minister Silvio Berlusconi. Mr Mills strenuously denies all the allegations.

Some observers speculated that the marriage split had been engineered to take the heat off the Cabinet Minister, who faced awkward questions from Opposition MPs about how much she knew of her husband's financial dealings.

The couple have since sold their £950,000 four-bedroom Victorian house in Kentish Town, North London, but denied recent reports that they have started divorce proceedings. Mr Mills also owns a farmhouse in Warwickshire, which the pair used as a weekend home.

A spokeswoman for Ms Jowell said her search for a new home was 'a purely private matter'. Mr Murray's accountancy firm, which handles all media requests on behalf of the actor, did not respond to repeated calls.